Aull & Monroe Investment Management Corp

Item 5 – Fees and Compensation

The specific manner in which fees are charged by Aull & Monroe is established in a client’s
written Agreement with Aull & Monroe. Aull & Monroe typically charges its clients a fee for
the investment advisory services offered based on a percentage of assets under
management. In certain limited situations, Aull & Monroe may charge a fixed fee or bill for
hourly charges based on a mutually agreed amount between the client and Aull & Monroe.

Management Fees will be payable beginning on the date the Agreement is executed or
based on a date thereafter (e.g., when the account(s) are funded or invested) (the “Billing
Inception Date”). Fees will be charged quarterly, in arrears, as of each third-month
anniversary of the Billing Inception Date (each, a “Billing Period”) based upon the value of
the assets as of the last day of the Billing Period. Management fees will not be prorated for
each capital contribution and withdrawal made to/from an account during the applicable
Billing Period.

Aull & Monroe’s annual asset-based fee schedule for a managed account, is as follows:
              First $1,000,000                     1.00%
              Next $4,000,000                      0.80%
              Balance over $5,000,000              Negotiable, not to exceed 1.00%

Aull & Monroe, on its own discretion, may negotiate and charge a fee less than that
specified above based on certain situations (e.g., account composition such as more fixed
income which generally requires less time and research to manage, anticipated future
contributions, related accounts, etc.). Therefore, some clients may pay more or less than
other clients for the same management services.

Either Aull & Monroe or the client may choose to terminate the Agreement at any time
upon written notice as outlined in the Agreement. In the event of termination, we will
assess any fees owed us for the portion of the Billing Period the account(s) were managed.

Aull & Monroe’s fees are exclusive of brokerage commissions, transaction fees, and other
related costs and expenses which shall be incurred by the client. Clients may incur certain
charges imposed by custodians, brokers, and other third parties such as custodial fees,

odd-lot differentials, transfer taxes, wire transfer and electronic fund fees, and other fees
and taxes on brokerage accounts and securities transactions.

Mutual funds, exchange traded funds and other investment pools also charge internal
management fees, which are disclosed in a fund’s prospectus or offering documents. Such
charges, fees and commissions are exclusive of and in addition to Aull & Monroe’s fee, and
Aull & Monroe shall not receive any portion of these commissions, fees, and costs. Aull &
Monroe as a matter of practice only invests in mutual funds with no load.

We do not use margin as an investment strategy. However, you may elect to borrow funds
against your investment portfolio. For accounts with a margin balance, you are assessed the
management fee based on the gross value of the assets in your account. In other words, your
account value on which the fee is calculated is not reduced by the margin balance. This could
create a conflict of interest where we may have an incentive to encourage the use of margin
to maintain a higher market value and therefore receive a higher fee.

Item 12 further describes the factors that Aull & Monroe considers in selecting or
recommending broker-dealers for client transactions and determining the reasonableness
of their compensation (e.g., commissions).

Clients may elect to be directly billed for management fees due Aull & Monroe, or with
written instruction and authorization, a client may elect to have the account custodian pay
fees due to Aull & Monroe directly from the managed account. The debited fee will also be
reflected on the monthly statement the client receives from the custodian. The account
custodian is not responsible for verifying the accuracy of the billing statement prior to
debiting the account.

Retirement Plan Advisory Services Fees
Retirement Plan Advisory Services Fees are an annual percentage fee of assets under
management based on the following blended fee schedule:

       First $1,000,000                     1.00%
       Next $4,000,000                      0.80%
       Balance over $5,000,000              Negotiable, not to exceed 1.00%

Plan Sponsors can decide whether the fees will be paid directly by the Plan Sponsor or
deducted from Plan assets. The specific fee arrangement, manner of collection, and timing
of fee payments will be set forth in the Plan’s written agreement with us. Our fees are
separate from and additional to any third-party administrative, custodial, recordkeeping,
or transaction fees incurred by the Plan and any Plan Participant accounts. We do not share
in any part of these fees. Fees are negotiable in our sole discretion.

Item 7 – Types of Clients

Aull & Monroe provides portfolio management services to individuals, high net worth
individuals, corporate pension and profit-sharing plans, charitable organizations,
corporations and other organized businesses, including sole proprietorships. Individual
clients include trusts, estates, 401(K) participant accounts and IRAs of individuals and their
family members. Aull & Monroe also provides educational services to some 401(K) plan
participants.

Aull & Monroe requires clients to have a minimum investment of $100,000 in assets under
management. This may include investments in multiple accounts for individuals or
entities. Exception to the minimum is provided for pension and profit-sharing plans with
anticipated future contributions. In addition, Aull & Monroe, at its sole discretion, may
make exceptions to the minimum when deemed appropriate.